Mumbai: Bharati Shipyard on Monday said it has hiked the open offer price to acquire stake in offshore service provider Great Offshore to Rs560 per share.

With the increase in offer price the size of the proposal now stands at Rs438.3 crore.

The company, which holds 22.48% share in Great Offshore, had initially offered to acquire 20% stake in the latter for Rs405 per share.

Bharati Shipyard is locked in a takeover battle with rival ABG Shipyard, which has also made an open offer to buy over 32.12% stake in Great Offshore at Rs520 a share.

In a filing to the BSE, Bharati Shipyard said its revision of the open offer price followed acquisition of 3.01% stake in Great Offshore by Dhanshree Properties (a sister concern of Bharati) from open market on 16 September.

“Based on the highest price paid for acquiring some of the shares in set out in the foregoing, the offer price stands revised from Rs405 to Rs560 per equity share," it said.

Shares of Bharati Shipyard closed at Rs194.95, down 3.01%, while Great Offshore settled down 0.45% at Rs558 on the BSE.

Bharati added that it intends to consolidate its shareholding in Great Offshore and provide stability to the existing management.

“The acquirer intended to consolidate the shareholding in target company (Great Offshore) and provide enhanced stability to its existing management, without any intent to gain management control of target company," the filing added.

In June, Bharati made an open offer for 20% stake in Great Offshore for Rs344 per share. This was countered by ABG Shipyard with a price of Rs375 per share for buying 32.12%. In July, Bharati raised the offer price to Rs405 a share, which was again met with a counter offer from the rival at Rs450.

In August, ABG Shipyard, which holds 8.28% stake in Great Offshore, again increased the offer price to Rs520 per share.